Average losses for cattle marketed by feedlots last week declined by more than $85 per head compared to the previous week. Feeders were forced to break out a new barrel of red ink as cash fed cattle prices declined more than $3 per hundredweight to $118.83.
The combination of lower cattle prices and steady beef cutout prices helped beef packers improve their profit margins by more than $5 per head, according to the Sterling Beef Profit Tracker. The Sterling Beef Profit Quotient declined 256 points for the week, according to estimates developed by Sterling Marketing, Inc., Vale, Ore.
Pork producer margins, however, continued climbing last week with profits now exceeding $30 per hog marketed. Negotiated cash hog prices jumped $5.60 per hundredweight for the week, boosting profits by more that $10 per head from the previous week. Pork packer margins were relatively steady, with average losses at just over $14 per head, according to the Sterling Pork Profit Tracker.
A year ago cattle feeders sold cash cattle at $108.32 per hundredweight, resulting in losses of $26.10 per head. Last year cash hogs fetched $94.38 per hundredweight, resulting in profits of $18.59 per head.
The Sterling Beef and Pork Profit Trackers are calculated using actual weekly prices for both cattle and hogs, feed costs, beef and pork cutout prices, drop credits and other factors that influence profit margins.
The Sterling Beef Profit Tracker for the week ending June 16:
- Average feedyard margins: -$152.18 per head.
- Average packer margins: $28.02 per head.
- Sterling Profit Quotient: -451.7.
The Sterling Pork Profit Tracker for the week ending June 16:
- Average farrow-to-finish margins: $30.86 per head.
- Average pork packer margins: -$14.31 per head.
The Sterling Beef and Pork Profit Trackers are produced by Sterling Marketing Inc. and John Nalivka, president, Vale, Ore., and are published weekly by Drovers/CattleNetwork.